Economic Crisis In India
Economic crisis in India. Indian government told us that the economic slowdown in India was due to the economic slowdown worldwide. But IMF has said that 80% of the reason for the world economic slowdown is the economic slowdown happening in the India. So this proves that the pathetic condition of the economy and unemployment in India today.
- It is due to the internal reasons of our country.
- It is due to the failures of the Modi Government.
How To Revive Economic Crisis In India.
Abhijeet Banerjee: Main problem in economic crisis is demand.
Abhijeet Banerjee who was recently awarded a Nobel Prize in the field of economics. He believes that the biggest problem in the economic crisis in India today is that of demand in the economy. Demand has fallen drastically. That is a common man in the country does not have money to buy anything. So the demand for everything in market has fallen. In his opinion the solution for this is to give the money in the hand of the common and poor man.
In his opinion the solution for this is to gave money in the hand of common and poor man.
- This can be done by increasing the minimum support price of the crops.
- This can be done by increasing The National Rural Employment Guarantee Scheme. There should be direct transfer of cash in the hands of poor people.
- He believes that the biggest priority of the government should be focus an human development that is spending more in the fields of education and health care in order to develop our labor force.
- He says that the Indian labor force in comparison with that of China, Bangladesh and Vietnam is ranked quite below and is of a much lower quality and the reason behind this is that we do not focus as much on education and health care due to which the labor quality is quite substandard in our country.
Ajay Chhibber: Recovery in investments is key to recovery in economy.
Ajay chhibber is a visiting scholar in the George Washington University and he has obtained his PhD from Stanford University.
In his opinion the ongoing trade wars between USA and China. This was a huge opportunity for the rest of the countries of the world to improve their economic growth. Because a lot of companies of the USA manufacture in china, the goods are made in China “So china basically exports manufacturing. Due to trade wars,these companies had to look for another country for manufacturing their goods, So the other countries could take up this job and take advantage of it. But India lost this opportunity due to lack of competitiveness and the rest of the countries like Bangladesh and Vietnam took advantage of this opportunity and invited the other companies and got them to invest in their country to shift the manufacturing.
According to Ajay Chhibber if we have to recover the Indian economic, we need to recover the investment.
- According to him,In order to boost rural demand we would need to spend more money on PM Kisan and MANREGA.
- He says that there is a need for a huge push in the tourism sector. A scheme like “Swaggat India could be launched which could double the tourists coming to India in the next Ten year.
- He is in favour in privatization. In his opinion, Air India,Bharat Petroleum, Shipping Corporation of India and the cement corporation of India should be privatized and disinvestment should be done.
- For the rest, He says that the government should focus on 8-10 industries and should give priority support to those industries.
Drinking Alcohol occurs death- (WHO)
Raghuram Rajan: Problem is centralized working of government.
In his opinion, the biggest problem of the government is its centralized approach for every decision, the PMO need to be approached. All the decisions stem from there and nobody else has the authority to take a huge decision due to which the government is highly inefficient. The PMO is approach on all matters.
- The government should quit looking for political motives in everything. If any economist criticizes the government or gives them a suggestion, Then the government should not try and (cost aspersions on him by saying) he must be paid by congress. He is doing this because of he must have some ulterior motive. The government should learn to accept suggestions.
- It should empower its ministers to take their own ministers and it should appoint competent ministers.
- He says that the government should clearly know what it wants regarding GST. There shouldn’t be attempts to change the rate of GST every few month, Because if we want to attract investment to our country then, for that, the tax and regulatory policies need to remain consistent.
- He says that the government should focus on the telecom sector and maintain its competitiveness in it. It should not so happen that the telecom sector is reduced into a monopoly or duopoly, where only one company rules, For example reliance jio. The government should focus on maintaining competition so that other companies can also thrive and the other options remain available to the consumers.
Rajeev Dubey: Only 3 way to turn around the economy. Consumption, Consumption and Consumption.
In his opinion, the economic crisis in India can be revived only by increasing consumption.
- The GST should be made simple.Fuel and alcohol should be brought under GST.
- Insolvency and Bankruptcy code, Real estate Regulation Act need to be made simpler. Foreign direct investment need to be made simpler and easier.
- In his opinion, India’s slow judiciary is also a huge problem. The government should focus on how soon the pending cases can be dealt with and make the Indian judiciary system.
- He says that the Ease of business should be improved in the entire country.Ease of business ranking is calculated by only focusing on Delhi, Mumbai. Hence it is improving in Mumbai and Delhi but it not improving in the rest of the country as fast.
Dr. Manmohan Singh: 4-Point remedy for extremely serious economic slowdown.
Our Ex Prime Minister Manmohan Singh has chalked out a four point plan to revive the Indian economic crisis.
- He said GST should be rationalized and improved.
- Demand should be revived.Consumer demand and consumption should be increased.
- Labor intensive sectors should be fixed.
- He says that we should attract private investment. We should look for opportunity in the places where India can increase its exports.
Reality of Economic Crisis In India
- India’s rank in the corruption index today has fallen two places below.
- India’s rank in the democracy has fallen Ten place below.
- And India’s rank in global competitiveness index, too, has fallen ten places below.
- Now India GDP has falls to 3.1% from 4.5% that the major factor of economic crisis in India.